4 reasons the economy looks like it's crumbling ? and what to do about it
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Business’ Allison Morrow
Summary
Here's what could happen to the economy and markets So the Fed needs to play catchup — and take far more drastic action than it would if it had started raising rates last year. Fed Chair Jerome Powell said this month the central bank would continue to raise rates by half a percentage point at the conclusion of each meeting until it’s satisfied inflation is getting under control — and then the Fed would continue to raise rates by a quarter-point for a while. The Fed is convinced it can raise rates without plunging the economy into a recession. More than $7 trillion has been wiped out from the stock market this year More than $7 trillion has evaporated from the stock market this year. When bond prices fall, yields rise — and yields on the 10-year Treasury topped 3% this month for the first time since 2018. That typically happens when the Fed hikes rates — the higher cost of borrowing makes the bonds less valuable when they mature, so a higher interest payment on the bonds (the yield) will help compensate and make them more attractive to investors.
As said here by David Goldman, CNN Business